Italy, Spain, Poland, Malta, Slovakia, Bulgaria, Romania, Norway, Hungary and more Contribute to Europe’s Nearly Five Percent Year-on-Year Tourism Growth in 2025

Friday, May 16, 2025

Despite rising global economic pressures and geopolitical uncertainties, Europe recorded a robust 4.9% year-on-year increase in international tourist arrivals during early 2025, driven largely by strong performances in countries like Italy, Spain, Poland, Malta, Slovakia, Bulgaria, Romania, Norway, Hungary and more. These destinations capitalized on shifting traveler preferences for affordable, off-season experiences, improved air connectivity, and accessible regional travel, positioning themselves as top choices for both intra-European and long-haul visitors. Their collective growth underscores the continent’s resilience and adaptability in sustaining tourism momentum amid challenging global conditions.

In the face of economic uncertainty and global political tensions, European tourism has once again proven its adaptability and resilience. The first quarter of 2025 witnessed a remarkable 4.9% year-on-year increase in international tourist arrivals, accompanied by a 2.2% rise in overnight stays, according to the European Travel Commission’s (ETC) latest “Trends & Prospects” report. A surge in demand for off-season travel, value-for-money destinations, and enhanced air connectivity has pushed multiple European countries to the forefront of this recovery, notably Italy, Spain, Poland, Malta, Slovakia, Romania, and Norway.

Sustained Momentum After a Record Year

Europe entered 2025 riding high on the momentum of a strong 2024, where tourist arrivals exceeded pre-pandemic figures by 6.2%, and overnight stays rose by 6.4%. Travelers increasingly favored value-oriented experiences and off-peak travel, with winter and Eastern European destinations emerging as major beneficiaries of these shifting preferences.

Countries such as Latvia (+27.8%), Lithuania (+28.4%), and Hungary (+17.5%) demonstrated the strongest percentage growth in arrivals during the first quarter. Meanwhile, Italy and Spain continued to draw large volumes of tourists, aided by their well-established tourism infrastructure and diverse seasonal offerings.

Eastern Europe and Winter Destinations Take the Lead

Eastern and Central Europe played a critical role in boosting regional tourism. Slovakia recorded a 14.0% increase in arrivals, and Poland followed closely with a 17.3% surge. Hungary and Romania also posted strong results, with growth figures at 17.5% and 11.3%, respectively.

Latvia and Lithuania led all reporting destinations in early 2025, posting the highest arrival increases at 27.8% and 28.4% respectively. This resurgence was bolstered by increased intra-European travel and easing visa and border restrictions across the region. Romania and Bulgaria, having joined the Schengen Area, benefited from more fluid cross-border movement, which significantly reduced travel barriers.

Winter travel trends also contributed to the upswing, with Norway and Italy emerging as popular ski destinations. Norway saw a 14.3% increase in arrivals and a 10.7% growth in overnight stays, while Italy’s appeal among budget-conscious travelers helped its ski sector expand by 8%.

Southern Europe Sees Off-Season Gains

Mediterranean countries experienced strong performance during what is traditionally a quieter travel period. During the opening months of 2025, Spain welcomed more than 10 million foreign tourists—an upswing of close to two million compared to the equivalent period in 2019.

Cyprus recorded a 15.4% rise in arrivals, while Malta followed with 12.3%. Enhanced air routes and milder winter weather contributed to the growing popularity of “cool-cations,” a trend that has seen travelers seeking less crowded yet temperate coastal destinations during the low season.

Value for Money Drives Traveler Decisions

The economic challenges facing global travelers have led to a heightened focus on affordability. The ETC report highlighted significant price increases in tourism-related services, with domestic package holiday costs rising by 12% and international ones by 10%. Rising travel costs have driven tourists to opt for briefer getaways in more affordable destinations across Europe.

Romania, Cyprus, Malta, and Hungary emerged as top beneficiaries of this trend, offering a blend of affordability and quality experiences. On the other hand, more expensive destinations such as Iceland and Monaco saw stagnation or decline.

Top Value-for-Money Destinations in Europe

According to the ETC’s sentiment analysis, the highest-rated countries in terms of perceived value for money included:

Italy: 9.09Cyprus: 9.08Malta: 9.04Greece: 9.03San Marino: 9.02

These destinations combined cost-effectiveness with quality attractions, allowing them to maintain strong momentum even during times of economic strain. Greece experienced a remarkable surge in UK tourist arrivals, with visitor numbers more than doubling year-on-year to reflect a 110.5% increase in early 2025.

Performance by Country: Arrival and Overnight Growth

Below is a snapshot of the top-performing countries by arrival and night growth in early 2025:CountryArrivals (%)Nights (%)Latvia27.820.0Lithuania28.413.0Hungary17.514.2Poland17.312.5Cyprus15.412.0Norway14.310.7Slovakia14.013.5Finland13.29.8Serbia12.810.6Malta12.310.2Luxembourg11.511.1Romania11.310.3Greece11.29.0France10.810.0Denmark10.09.8Italy9.89.5

Some countries showed minimal growth or a decline in tourism indicators. For example, Austria reported a -2.4% drop in arrivals, Iceland fell by -3.1%, and Croatia recorded a significant -16.4% decrease.

U.S. Tariff Impact and American Arrivals

The ETC report cautioned that new U.S. tariffs and volatile exchange rates could temper the flow of American tourists into Europe. Prior to the pandemic, U.S. Long-haul visitors from abroad made up more than one-third of all intercontinental tourism to Europe. Despite this risk, early 2025 data showed that arrivals from the United States continued to rise in many European destinations.

Countries that saw notable increases in U.S. arrivals and nights spent include:CountryArrivals (%)Nights (%)Norway37.036.0Latvia24.034.0Malta34.012.0Denmark28.027.0Cyprus26.019.0Poland25.017.0Hungary17.012.0Luxembourg14.018.0Austria12.017.0Switzerland12.015.0

Even countries with overall lower growth or slight declines in general tourism numbers, such as Austria and Monaco, experienced double-digit gains in American tourism.

On the other hand, destinations such as Greece (-11.2%) and Bulgaria (-52.8%) recorded sharp declines in U.S. arrivals, likely influenced by a mix of economic, regulatory, or promotional factors.

Regional Trends: Short-Haul and Intra-Europe Travel Rise

With persistent global uncertainty, many European travelers opted for short-haul travel and intra-regional tourism. This trend was further supported by improved transportation links, relaxed visa policies, and the economic advantages of regional trips over long-haul vacations.

Countries with strengthened rail and budget airline connectivity—such as Poland, Slovakia, and Hungary—capitalized on these dynamics to attract regional visitors.

Air Connectivity and Infrastructure Investments

Improved air connectivity played a pivotal role in sustaining tourism growth, particularly for smaller countries and island destinations. Malta and Cyprus benefited from new airline routes and low-cost carrier expansions. Enhanced scheduling and more frequent intra-European flights helped boost short-stay tourism, especially from source markets like the UK, Germany, and the Netherlands.

Declines and Stagnations: A Mixed Picture

Not all destinations shared equally in the tourism resurgence. The following countries recorded either stagnation or negative growth in arrivals and overnight stays:CountryArrivals (%)Nights (%)Austria-2.4-1.8Iceland-3.1-5.5Croatia-16.4-16.3Bulgaria0.21.5Netherlands0.0-0.3

These declines may reflect a combination of higher price points, reduced promotional efforts, or a lack of off-season offerings compared to competitors.

Outlook for 2025: Diversity and Value as Key Drivers

Looking ahead in 2025, Europe’s travel sector is projected to maintain its momentum, marked by adaptability and steady growth across diverse destinations. The ETC projects that ongoing interest in off-peak travel, combined with heightened awareness of affordability, will continue to shape traveler behavior. Countries that offer a strong value proposition, convenient access, and seasonal diversity are likely to sustain or accelerate their recovery trajectories.

The diversity of Europe’s tourism offering—from winter escapes in Norway and Slovakia to cultural city breaks in Hungary and Poland—positions the region for sustained success, even amid external uncertainties such as trade disputes and currency fluctuations.

A Robust Start Sets the Tone

Europe’s tourism industry has started 2025 on solid footing, recording nearly 5% growth in international arrivals and 2.2% in overnight stays. Countries such as Italy, Spain, Poland, Malta, Slovakia, Romania, and Norway have emerged as frontrunners in this recovery, backed by their strategic emphasis on value, accessibility, and seasonal appeal.

Italy, Spain, Poland, Malta, Slovakia, Bulgaria, Romania, Norway, Hungary, and others fueled Europe’s 4.9% tourism growth in early 2025 by offering affordable, off-season travel options and benefiting from improved connectivity and eased regional access. Their strong performance highlights a shift toward value-driven and short-haul tourism across the continent.

Although challenges like new U.S. tariffs and evolving global travel trends present uncertainties, Europe’s flexible tourism landscape and wide-ranging destination appeal are set to maintain its strong competitive edge through the remainder of the year.